Business World

Sunday 8 December 2019

Rising Providence bucks European trends, ECB signals change of tack

Traders work on the floor of the New York Stock Exchange shortly after the markets open in New York November 7, 2014. REUTERS/Lucas Jackson (UNITED STATES - Tags: BUSINESS)
Traders work on the floor of the New York Stock Exchange shortly after the markets open in New York November 7, 2014. REUTERS/Lucas Jackson (UNITED STATES - Tags: BUSINESS)
Gavin McLoughlin

Gavin McLoughlin

The ISEQ index of Irish shares fell 1.47pc yesterday, while in Europe stocks fell from a five-week high, with bank shares down amid signs that the ECB is to step up its regulatory scrutiny.

In Dublin, rock drill manufacturer Mincon Group was down almost 20pc after posting disappointing third-quarter results.

Its core sales in the third quarter were 9pc lower than in the second quarter, with the global mining industry struggling.

AIB, Permanent TSB and Bank of Ireland all declined.

On the other side of the board, Providence Resources rose 2.66pc.

A report by energy consultants Wood Mackenzie that was circulated yesterday estimated that 60m barrels of oil and 12bn cubic feet of gas are recoverable from the Barryroe field, in which Providence has an 80pc interest.

Meanwhile. the Stoxx Europe 600 Index slid 0.5pc to 335.25 at the close of trading.

"A move higher for European stocks has to come from exporters and banks," said Luca Paolini, chief strategist at Pictet Asset Management.

"Banks are such a big part of the index but even after all that the ECB has done, lending and bad loans remain a key problem. We're finally seeing some improvement in European earnings and I think we're really close to bottoming out. The economic recovery is fragile but market sentiment has really changed in the past weeks."

US stocks fluctuated, after benchmark indexes closed at all-time highs yesterday - as a report showed companies hired fewer workers than forecast in October, while the jobless rate dropped to a six-year low.

"It was an OK report, but it doesn't give any sort of indication that there's any kind of acceleration in economic activity," said Peter Sorrentino from Huntington Asset Advisors. (Additional reporting Bloomberg)

Irish Independent

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